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Companies often overlook the relationship between customer service and revenue. While companies believe that revenue depends on marketing and quality, customer service is equally as important. That’s not just a claim – customer experience statistics reveal that a 5% increase in customer retention can lead to a 15-20% increase in a company’s profit. In this blog, we’ll look at the relationship between customer service and revenue in greater detail.
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Revenue and Customer Service
Too often, business owners put customer service on the back burner as they build their company to focus on increasing revenue.
Although this may be effective in the short term, putting money before your customers will only hurt your business in the long run.
That’s because research shows that customer service and revenue are closely linked.
In fact, your customer support should be one of your top priorities when you’re looking to grow your business.
Furthermore, studies reveal that customer retention is cheaper than customer acquisition.
That means it is more profitable down the lane to retain customers rather than focusing more on acquiring them.
Furthermore, over 80% of customers reported that if they got a better level of customer service than a competitor, they’re more likely to repurchase.
Here’s how you can use this connection to boost your revenue while also delighting your customers.
The Relationship Between Customer Service and Revenue
Customer service and revenue are inseparable. Without customers, your business is worthless.
And without revenue, you don’t have a customer service department (nor do you have money to pay for one).
So how can customer service improve revenue?
By increasing customer loyalty and making it easier for customers to buy from you again and again, better support increases your company’s reputation.
That directly impacts your bottom line by attracting new customers, building brand recognition, and increasing retention.
Plus, happy customers are more willing to spread positive word of mouth about your products and services.
The relationship between customer service and revenue is critical in all businesses because happier customers lead to higher revenues which lead to better support…and so on!
Customer support can affect all areas of your business from project sales to pricing or costs – it’s worth reviewing every aspect of your organization with customer service in mind.
Be aware that quality customer support has a direct impact on revenue.
Happy customers tell their friends about you, buy more from you than other companies, and spend more than competitors over time.
Bad experiences, on the other hand, will turn customers away (or worse!).
So make sure you’re doing everything you can to keep your customers happy!
Tips to Make Sure Your Staff is Properly Trained
- It involves ongoing training, frequent updates to policies and processes, ongoing communication with customers, and clear documentation that can be referred to when handling complaints or queries.
It’s important to keep in mind too that technology continues to transform customer service.
- Learn new ways of interacting with customers, especially through social media channels like Facebook or Twitter.
From FAQs on your website, through automated alerts, if you want to escalate a complaint, all aspects of customer service should be as seamless as possible – especially for repeat customers who are used to doing business with you.
- Your staff must keep abreast with the latest trends on how they manage their customers and staff, especially by leveraging technology appropriately while making optimal use of available resources.
The interrelationship between various parts of your business plays an important role in providing quality services including customer support leading to improved revenue generation for better profits for your company.
Good Customer Service Leads to More Sales
It’s been said countless times: that great customer service will lead to more sales. But is that true?
Many businesses focus heavily on customer service, not realizing that what their customers want may not be more excellent service.
Instead, customers may just want someone to listen to them.
While it may seem counterintuitive, spending time talking with your customers can do wonders for your business.
A lack of communication is one of many reasons why customer loyalty has become so hard to earn and keep.
If you’re talking with your customers, finding out what they want and how they think you can help them, then that customer service can lead to more sales.
It all depends on how willing you are to listen to your customers.
When you’re communicating with your customers, it’s easier to get a sense of what they want, so you can do your best to help them—and that, in turn, leads to more sales.
Keep an open line of communication between you and your customers, letting them know how much you value their input.
If they know their opinions matter to you, then they will be more willing to spend money with your company.
Being there for your customers can be as simple as listening to what they have to say.
Giving them time, attention, and support will go a long way toward building customer loyalty.
That’s one of many reasons why great customer service doesn’t necessarily mean you need to do more.
It just means you need to do a better job at what you already do.
How to Provide Better Customer Support
There are a few ways businesses can provide better customer support, whether it’s online or in-person.
One way is to take an active role in helping customers solve their problems, instead of doing as little as possible to solve a problem before moving on to something else.
When customers aren’t able to find answers by searching for them, they often post about their problems on social media or review sites—and that can cause damage to your business reputation.
By taking an active role in customer service, you not only provide a better experience for customers but also help turn one-time customers into long-term customers who will continue to patronize your business in future purchases.
It’s easier to make money from loyal customers than it is from strangers!
By helping customers solve their problems, you not only help make them happy but also keep them coming back to your business.
According to Forbes, 96% of consumers who have had a good customer service experience plan to buy from that company again.
And 86% of consumers who feel respected by customer service agents say they’re more likely to recommend that brand to others.
If your competitors are doing better at providing customer support than you are, it could lead people to switch products or services.
Exceptional Customer Support Boosts Business Performance
Providing good customer service is an important part of growing a business.
The more you know about your customers’ needs, wants, and challenges, the more effective your customer support can be.
And in today’s digital age, where customers have so many channels to reach you through—email, live chat, social media—you have to have stellar customer support to keep business coming in.
New research shows that keeping customers happy will boost revenue.
According to a recent survey by Wrike, Inc., 74% of customers are willing to spend more with companies that provide great customer service.
The same survey showed that 85% of customers who experience good customer service will return as customers, compared to 57% of those who had bad customer support.
Another study found that a 5% increase in customer retention can impact up to 25% of your revenue over time!
Offering excellent customer support is key to keeping them coming back for more.
Providing stellar support creates loyal fans and encourages repeat business, but it’s not always easy—especially when you have several different platforms available for them to reach you on.
You might have an email address, social media accounts, a phone number, live chat, or multiple channels for customers to reach you on.
Having all of these options to provide customer support can be great for convenience—but it can also create chaos.
It’s impossible to maintain every channel at peak performance when you don’t have a good handle on where your customers are.
However, if you’re able to provide omnichannel support, that’ll enhance your customer service from good to great.
One of the ways you can manage that easily is to outsource customer support.
Outsourcing a chunk of your business helps you focus more on core operations while also providing exceptional customer service.
Your customer-facing teams are an extension of your brand, so they deserve just as much attention as marketing, product management, finance, and everything else.
To create a truly successful organization that has healthy revenue streams, you must help your customers when they need it most—even before they know they need it.
The best way to do that is by creating customer support teams that know their customers intimately.
They might even know them better than you do! Customer support reps can turn every interaction into a sales opportunity if managed properly.
By listening in on customer conversations and speaking up in real-time with relevant offers or discounts, customer service reps can add millions of dollars to their company’s revenue annually.
As you can see, customer service teams play a huge role in driving revenue.
And that success can be attributed to our commitment to helping customers however we can; whether it be through personal calls or customized help articles tailored to their exact needs.
While these strategies don’t necessarily drive sales directly, they do ensure that customers are happy with our product and ready to recommend us at a moment’s notice.
Think about your customers. The next time you have a great experience with a customer service rep, tell them you appreciate it.
And when they help you in any way, be sure to take note — and reward them for their hard work!
Customer service reps are an often-overlooked aspect of a company, but they’re an important piece of any successful business model.